After a robust gain of nearly 2% on Friday, November 11, the market witnessed profit booking and ended mildly lower on Monday, November 14.
This did not surprise analysts as they expected some profit booking due to the prevailing uncertainty in the market.
The market is expected to remain volatile in the short term reacting to global cues and macroeconomic prints.
“Though we’re just inches away from the record high, the absence of momentum is keeping the participants, especially traders, on their toes. Besides, the lack of broader participation is further adding to their worries. Amid all, we reiterate our view to focus on identifying the top performers from across sectors and utilise intermediate pauses and dips to add them gradually,” said Ajit Mishra, VP - Research, Religare Broking.
Based on the recommendations of various analysts, here are seven stocks that one can buy for the short term:
Analyst: Jigar S. Patel, Senior Manager - Equity Research, Anand Rathi Share and Stock Brokers
On a daily scale, this counter has formed classic Doji near its historical support of ₹375 along with drying volume which indicates that bears are losing grip.
On the indicator front, the daily RSI (relative strength index) has formed a bullish divergence near the oversold zone which further confirms the upside in the counter.
“One can buy in small tranches at current levels and buy another tranche at around ₹370 levels (if tested). The upside is expected till ₹480 and support is seen around ₹350,” said the analyst.
On a daily scale, negative volume is drying up indicating possible upside momentum. On the indicator front, the monthly RSI has formed an impulsive structure near the oversold zone which further confirms the upside in the counter.
On a monthly scale, Lupin has successfully closed above its historical resistance of ₹720. Recently, the counter has formed a bullish shark pattern on a weekly scale.
Momentum indicator ROC (rate of change) 21-day is positive, hinting upside left in the counter till ₹805 with a credible support seen at ₹710. One can buy at the current market price in small tranches and another at ₹730 if tested,” said the analyst.
Analyst: Sumeet Bagadia, Executive Director, Choice Broking
On the weekly chart, the stock is sustaining above ₹400, which was previously acting as resistance. This confirms bullishness.
Moreover, it is also forming higher high higher low formations on the daily chart. On the daily chart, the stock is trading above 21 and 50 DMA (daily moving average), confirming the ongoing rally.
The price is trading above the ‘Ichimoku cloud’ and a positive crossover is indicated in RSI and MACD in the momentum indicator.
Sustaining high volume points out buying interest among the traders.
“One can initiate a long position at the current market price. However, on the safer side, near ₹395-396 levels would be a better range to enter. Closing and sustaining above ₹408 will lead towards ₹435-440 levels in the coming days,” said the analyst.
On the daily chart, Hindustan Copper is in a bullish trend, forming an ascending triangle.
A demand zone is created along the trendline, pushing the price up and making good support. Also, there is good volume participation whenever the price tries to breach the trendline, forming a higher low.
Moving averages have converged, especially 21 and 50, around ₹107 to ₹110 levels, whereas the stock is at ₹117, suggesting that there is a breakout and confirming a primary uptrend.
DMI, a strength indicator, is at 28, suggesting there is strength in the up move and it will continue.
“The stock can be bought at the current market price with a possibility of a 6% to 9% target which can be placed at ₹119 to ₹123. Our view will negate if the price breaches ₹108,” said the analyst.
On the daily chart, the stock is in a good positive uptrend and has good volume participation along the rising trendline.
It has managed to make higher lows and lower highs for the last few months confirming a symmetrical triangle formation.
Bollinger band expansion is seen along with price-action suggesting volatility may take the price to higher levels.
The stock is trading above all its short-term, medium-term and long-term moving averages, suggesting there is a breakout and the primary uptrend is confirmed.
Analyst: Vaishali Parekh, Vice President - Technical Research, Prabhudas Lilladher
The stock, after a long wait, has come out of the descending channel pattern on the daily chart to indicate a breakout.
This may improve and strengthen the bias and the stock is anticipated to move further upward in the coming days with indicators getting stronger.
The RSI indicator is well-placed and is on the rise. “With the chart looking good, we recommend a positional buy in this stock for an upside target of ₹3,620, keeping a stop loss of ₹3,200,” said the analyst.
This stock has indicated an ascending channel pattern on the daily chart with improved bias recently taking support near ₹102-103.
It is moving past the significant 200DMA and 50EMA levels near ₹109.
“We anticipate a further upward move in the coming days. The stop loss as of now can be maintained near ₹103 and the initial upside targets expected is near ₹140-145 levels,” said the analyst.
Disclaimer: The views and recommendations given in this article are those of individual analysts. These do not represent the views of MintGenie.